SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-Q

[X]      QUARTERLY  REPORT  PURSUANT  TO SECTION 13 OR 15 (d) OF THE  SECURITIES
         EXCHANGE ACT OF 1934

         For the quarterly period ended March 31, 1998

                                       OR

[_]      TRANSITION  REPORT  PURSUANT  TO SECTION 13 OR 15(d) OF THE  SECURITIES
         EXCHANGE ACT OF 1934

         For the transition period from _______________ to _______________

                         Commission File Number: 1-7675

                        AUDITS & SURVEYS WORLDWIDE, INC.
                        --------------------------------
             (Exact name of registrant as specified in its charter)

         DELAWARE                                       13-1809586
         --------                                       ----------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
incorporation or organization)

650 AVENUE OF THE AMERICAS, NEW YORK, NEW YORK               10011
----------------------------------------------             ---------
   (Address of principal executive offices)                (Zip Code)

Registrant's telephone number, including area code: (212) 627-9700

         Indicate by check mark whether the registrant (l) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days.

                              Yes [X]        No [_]

         The number of shares  outstanding  of each of the  issuer's  classes of
common stock, as of May 11, 1998 was:

          Class                                                 Number of Shares
          -----                                                 ----------------
Common Stock, $0.01 par value                                      13,111,470


<PAGE>


                        AUDITS & SURVEYS WORLDWIDE, INC.


                                      INDEX



                                                                            PAGE
                                                                            ----

PART I.      FINANCIAL INFORMATION

Item 1.      Financial Statements

             Condensed Consolidated Balance Sheets-
                March 31, 1998 and December 31, 1997                         3-4

             Condensed Consolidated Statements of Operations-
                Three Months ended March 31, 1998 and 1997                    5

             Condensed Consolidated Statements of Cash Flows-
                Three Months ended March 31, 1998 and 1997                    6

             Condensed Consolidated Statement of Stockholders' Equity-
                March 31, 1998                                                7

             Notes to Condensed Consolidated Financial Statements             8

Item 2.      Management's Discussion and Analysis of Financial Condition
             and Results of Operations                                      9-10


PART II.     OTHER INFORMATION

Item 6.      Exhibits and Reports on Form 8-K                                11

             Signatures                                                      12






                                       2

<PAGE>




PART I.  FINANCIAL INFORMATION
ITEM 1.     FINANCIAL STATEMENTS

AUDITS & SURVEYS WORLDWIDE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
--------------------------------------------------------------------------------
(Dollar amounts in thousands)


                                                  MAR. 31, 1998  DEC. 31,1997
                                                  -------------  ------------
                                                   (Unaudited)
ASSETS

CURRENT ASSETS:
       Cash                                           $   706       $ 1,524
       Accounts receivable:
          Billed                                        8,139         9,274
          Unbilled                                      6,863         6,114
       Prepaid expenses and inventories                 1,335         1,317
       Deferred income taxes                              479           479
       Other current assets                               322           563
                                                      -------       -------

          Total current assets                         17,844        19,271
                                                      -------       -------

PROPERTY AND EQUIPMENT, NET                             3,779         3,579

PREPAID PENSION COSTS                                   1,142         1,142

DEFERRED INCOME TAXES                                   2,348         2,406

OTHER ASSETS                                            2,090         2,057
                                                      -------       -------

TOTAL ASSETS                                          $27,203       $28,455
                                                      =======       =======



            See notes to condensed consolidated financial statements.


                                       3
<PAGE>


AUDITS & SURVEYS WORLDWIDE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
--------------------------------------------------------------------------------
(Dollar amounts in thousands)


<TABLE>
<CAPTION>
                                                            MAR. 31, 1998    DEC. 31,1997
                                                            -------------    ------------
                                                             (Unaudited)
<S>                                                              <C>           <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
                                    
CURRENT LIABILITIES:
       Notes payable bank                                     $  2,900         $  1,500
       Accounts payable and accrued expenses                     4,992            6,148
       Accrued payroll and bonuses                                 659            2,197
       Customer billings in excess of revenues earned            4,376            3,897
       Income taxes payable                                       --                133
       Current portion of long-term debt                           619              617
       Current portion of capital lease obligations                 93               80
                                                              --------         --------
                                                                            
          Total current liabilities                             13,639           14,572
                                                              --------         --------
                                                                            
LONG-TERM DEBT-Net of current portion                            1,546            1,702
CAPITAL LEASE OBLIGATIONS - Net of current portion                 196              230
OTHER LIABILITIES                                                1,924            2,043
                                                              --------         --------
                                                                            
          Total liabilities                                     17,305           18,547
                                                              --------         --------
                                                                            
MINORITY INTEREST                                                  128              102
STOCKHOLDERS' EQUITY:                                                       
       Preferred stock, $1.00 par value, 1,000,000 shares                   
          authorized and unissued                                 --               --
       Common stock, $.01 par value, 30,000,000 shares                      
          authorized; 13,111,470 shares issued at                           
          March 31, 1998 and 13,111,137 shares issued                       
          at December 31, 1997                                     131              131
       Additional paid-in capital                                4,414            4,413
       Retained earnings                                         5,328            5,366
       Accumulated other comprehensive income                     (103)            (104)
                                                              --------         --------
                                                                            
       Total stockholders' equity                                9,770            9,806
                                                              --------         --------
                                                                            
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                    $ 27,203         $ 28,455
                                                              ========         ========
</TABLE>                                                               

            See notes to condensed consolidated financial statements.

                                       4


<PAGE>


AUDITS & SURVEYS WORLDWIDE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
--------------------------------------------------------------------------------
(Dollar amounts in thousands except for per share data)

<TABLE>
<CAPTION>
                                                        THREE  MONTHS  ENDED MARCH 31,
                                                        ------------------------------

                                                             1998            1997
                                                         ------------    ------------
<S>                                                      <C>             <C>         
REVENUES                                                 $     13,743    $     16,922
                                                         ------------    ------------

COSTS AND EXPENSES:
       Direct costs                                             6,682           8,580
       Selling, general and administrative expenses             7,210           6,888
       Incentive bonuses                                           48             400
       Interest expense                                            76              64
       Other (income) - net                                       (25)            (53)
       Minority interests in consolidated subsidiaries            (74)           --
                                                         ------------    ------------

TOTAL COSTS AND EXPENSES                                       13,917          15,879
                                                         ------------    ------------

(LOSS) INCOME BEFORE
       (CREDIT) PROVISION FOR INCOME TAXES                       (174)          1,043

(CREDIT) PROVISION FOR INCOME TAXES                              (136)            428
                                                         ------------    ------------

NET (LOSS) INCOME                                        $        (38)   $        615
                                                         ============    ============

BASIC EARNINGS PER COMMON SHARE                          $       --      $        .05
                                                         ============    ============

WEIGHTED AVERAGE COMMON
       SHARES OUTSTANDING                                  13,111,137      13,099,103
                                                         ============    ============

DILUTED EARNINGS PER COMMON SHARE                        $       --      $        .05
                                                         ============    ============

WEIGHTED AVERAGE COMMON SHARES
       OUTSTANDING AND DILUTIVE
       STOCK OPTIONS                                       13,111,137      13,311,485
                                                         ============    ============
</TABLE>



            See notes to condensed consolidated financial statements.

                                       5

<PAGE>


AUDITS & SURVEYS WORLDWIDE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
--------------------------------------------------------------------------------
(Dollar amounts in thousands)

<TABLE>
<CAPTION>
                                                                  THREE MONTHS ENDED MARCH 31,
                                                                  ----------------------------
                                                                         1998       1997
                                                                       -------    -------
<S>                                                                    <C>        <C>    
CASH FLOW FROM OPERATING ACTIVITIES:
       Net (loss) income                                               $   (38)   $   615
       Adjustments to reconcile net income to net cash
                (used in) operating activities:
          Depreciation and amortization                                    285        244
          Deferred income taxes                                             58       --
          Amortization of deferred charges                                  82         93
          Accrued rent                                                     (25)        33
          Changes in operating assets and liabilities:
             Accounts receivable                                           386     (1,217)
             Prepaid expenses and inventories                              (18)      (323)
             Other current assets                                          241        122
             Other assets                                                    3        (22)
             Income taxes payable                                         (133)      (148)
             Accounts payable and accrued expenses                      (1,156)       (62)
             Accrued payroll and bonuses                                (1,538)    (1,711)
             Customer billings in excess of revenues earned                479       (953)
             Other                                                         (68)       (84)
                                                                       -------    -------
                           Net cash used in operating activities        (1,442)    (3,413)
                                                                       -------    -------

CASH FLOWS FROM INVESTING ACTIVITIES:
       Purchases of property and equipment                                (485)      (173)
       Investment in joint venture                                        (119)      --
                                                                       -------    -------
                           Net cash used in investing activities          (604)      (173)
                                                                       -------    -------

CASH FLOWS FROM FINANCING ACTIVITIES:
       Proceeds from bank borrowings                                     1,400      1,500
       Dividends to stockholders                                          --         (655)
       Principal payments of debt                                         (153)      (146)
       Principal payments of capital lease obligations                     (21)       (13)
       Issuance of common stock and directors' options                       1          5
                                                                       -------    -------
                           Net cash provided by financing activities     1,227        691
                                                                       -------    -------

EFFECT OF EXCHANGE RATE DIFFERENCES ON CASH                                  1          8
                                                                       -------    -------


NET DECREASE IN CASH                                                      (818)    (2,887)

CASH, BEGINNING OF PERIOD                                                1,524      3,827
                                                                       -------    -------

CASH, END OF PERIOD                                                    $   706    $   940
                                                                       =======    =======

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
  Cash paid during the period for: Interest                            $    84    $    26
                                                                       =======    =======
                                   Income taxes                        $   347    $   563
                                                                       =======    =======
SUPPLEMENTAL DISCLOSURE OF NON CASH
INVESTING AND FINANCING ACTIVITIES:
  Financing of capital improvements                                               $   430
                                                                                  =======
</TABLE>

            See notes to condensed consolidated financial statements.

                                       6

<PAGE>


AUDITS & SURVEYS WORLDWIDE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (UNAUDITED)
--------------------------------------------------------------------------------
(Dollar amounts in thousands)


<TABLE>
<CAPTION>
                                                                                    ACCUMULATED
                                                          ADDITIONAL                   OTHER
                                  COMMON       STOCK       PAID-IN      RETAINED   COMPREHENSIVE               COMPREHENSIVE
                                  SHARES       AMOUNT      CAPITAL      EARNINGS       INCOME        TOTAL         INCOME
                                ----------   ----------   ----------   ----------    ----------    ----------    ----------
<S>                             <C>          <C>          <C>          <C>           <C>           <C>                   
BALANCE
DECEMBER 31, 1997               13,111,137   $      131   $    4,413   $    5,366    $     (104)   $    9,806          --

    Net loss                          --           --           --            (38)         --             (38)   $      (38)

    Exercise of stock options          333         --              1         --            --               1          --

    Foreign Currency
      Translation Adjustment          --           --           --           --               1             1             1
                                                                                                                 ----------

    Comprehensive Income              --           --           --           --            --            --      $      (37)
                                                                                                                 ==========

BALANCE
MARCH 31, 1998                  13,111,470   $      131   $    4,414   $    5,328    $     (103)   $    9,770
                                ==========   ==========   ==========   ==========    ==========    ==========

</TABLE>




            See notes to condensed consolidated financial statements

                                       7

<PAGE>




                AUDITS & SURVEYS WORLDWIDE, INC. AND SUBSIDIARIES
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS



1.       BASIS OF PRESENTATION


         The accompanying  condensed  consolidated  financial statements include
         the accounts of Audits & Surveys Worldwide,  Inc. (the "Company"),  and
         its majority  owned  subsidiaries,  Audits & Surveys  Europe,  Ltd. and
         ASW-KMR Magazine Metrics,  L.L.C., and certain other currently inactive
         entities. All significant  intercompany  transactions and balances have
         been eliminated.

         The 1998 and 1997 condensed consolidated financial statements have been
         prepared  by the  Company  and are  unaudited.  In the  opinion  of the
         Company's  management  all  adjustments   (consisting  only  of  normal
         recurring  adjustments)  necessary  to  present  fairly  the  financial
         position,  results of operations and cash flows for the interim periods
         have been made. Certain information and footnote  disclosures  required
         under generally accepted  accounting  principles have been condensed or
         omitted  from the  consolidated  financial  statements  pursuant to the
         rules and  regulations of the Securities and Exchange  Commission.  The
         condensed  consolidated financial statements presented herein should be
         read in conjunction with the year-end consolidated financial statements
         and notes thereto  included in the Company's Annual Report on Form 10-K
         for the year ended December 31, 1997. The results of operations for the
         three-month period ended March 31, 1998 are not necessarily  indicative
         of the results to be expected for any other  interim  period or for the
         entire year.






                                       8


<PAGE>


ITEM 2.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
         OF OPERATIONS

Comparison  of the Results of  Operations  for the Quarter  ended March 31, 1998
--------------------------------------------------------------------------------
with the quarter ended March 31, 1997
-------------------------------------

Revenues for the first quarter of 1998 decreased  $3.2 million  (18.8%) to $13.7
million  compared  with  $16.9  million in the first  quarter  of 1997.  The net
decrease in revenues  was  principally  attributable  to a client's  decision to
conduct a major international consumer tracking study on an alternate year basis
rather than  annually.  Substantially  all of the revenues  from this study were
reported in the first quarter of 1997.

Direct  costs  decreased  $1.9  million  (22.1%)  in the first  quarter  of 1998
compared  with 1997,  primarily as a result of the  decrease in  revenues.  As a
percentage  of revenues,  direct costs were 48.6% in 1998 compared with 50.7% in
1997.  The decrease in direct costs as a percentage  of revenues  resulted  from
changes in the  overall  mix of  research  studies in the first  quarter of 1998
compared with the same period of 1997.

Selling, general and administrative (SG&A) expenses increased $.3 million (4.7%)
in the first quarter of 1998.  Approximately  20% of the increase was in payroll
and related costs and resulted  primarily  from normal salary  adjustments.  The
remainder of the increase in SG&A expenses was spread over various expenses such
as rent, utilities, depreciation, professional and consulting fees and additions
to the allowance for doubtful accounts.

The lower provision for incentive  bonuses in the first quarter of 1998 compared
with the same period of 1997 resulted  from the decrease in operating  income on
which the incentive bonuses are calculated.

Income  taxes for the first  quarter of 1998  reflect a tax credit of 78% of the
reported  pretax loss compared with a tax provision in the first quarter of 1997
at 41% of  reported  pretax  income.  The 1998 tax  credit  includes a credit of
$65,000 in accumulated  tax  over-provisions  of prior years which are no longer
required.

Financial Condition and Liquidity
---------------------------------

At March 31, 1998, the Company had working capital of $4.2 million and a current
ratio of 1.31 to 1 compared  with working  capital of $4.7 million and a current
ratio of 1.32 to 1 at December 31, 1997.

Cash flow from  operations and borrowings  under its credit  facilities with its
bank are the Company's  principal  sources of funds. The Company's cash flow and
borrowings  have  historically  been  sufficient  to provide  funds for  working
capital, capital expenditures and payment of indebtedness. The Company maintains
a $4,000,000 secured line of credit with its bank which expires on June 5, 1998.
The Company believes it will be successful in renewing such line of credit.




                                       9
<PAGE>



Net cash used in operating  activities was $1,442,000,  consisting  primarily of
the net loss of $38,000 adjusted for non-cash expenses of $400,000, increases in
customer  billings in excess of revenue  earned of  $479,000  and  decreases  in
accounts  receivable  of $386,000  offset  primarily  by  decreases  in accounts
payable and accrued  expenses of $1,156,000  and accrued  payroll and bonuses of
$1,538,000.

Net cash used in investing  activities was $604,000  resulting from the purchase
of property  and  equipment  of $485,000 and  investments  in joint  ventures of
$119,000.

Net cash provided by financing activities was $1,227,000 consisting primarily of
proceeds from short term bank  borrowings of $1,400,000  offset by repayments of
bank borrowings and other debt of $174,000.

The Company  believes that its credit  arrangements  with its bank combined with
its capital base and funds  expected to be generated by its  operations  will be
adequate to fund its planned capital expenditures, meet its debt obligations and
finance its operations for at least the next twelve months.

NEW ACCOUNTING PRINCIPLES

During 1997,  the  Financial  Accounting  Standards  Board issued the  following
accounting  standards:  Statement of  Financial  Accounting  Standards  No. 130,
"Reporting   Comprehensive  Income"  (SFAS  No.  130),  Statement  of  Financial
Accounting  Standards No. 131,  "Disclosures about Segments of an Enterprise and
Related  Information"  (SFAS No.  131) and  Statement  of  Financial  Accounting
Standards No. 132 "Employers Disclosures about Pension and other Post Retirement
Benefit Plans" (SFAS No. 132).  The Company does not expect any material  effect
from  adoption of SFAS No. 131 and 132.  The Company has adopted SFAS No, 130 in
the current  quarter and has  reported  comprehensive  income as a component  of
equity.

FORWARD LOOKING STATEMENTS

This report contains  forward-looking  statements  within the meaning of Section
21E of the Securities  Exchange Act of 1934, as amended.  As such, final results
could differ from estimates or expectations due to factors such as incomplete or
preliminary  information or changes in government  regulation and policies.  For
any of these  factors,  the Company claims the protection of the safe harbor for
forward-looking statements contained in the Private Securities Litigation Reform
Act of 1995, as amended.



                                       10

<PAGE>


                           PART II - OTHER INFORMATION



ITEM 6.       EXHIBITS AND REPORTS ON FORM 8-K.*

a.            Exhibits:


              27.01 Financial Data Schedule


b.            Reports on Form 8-K:

              The  Company  has not filed any  reports  on Form 8-K  during  the
              quarterly period ended March 31, 1998.




















------------------------
*     There is no instrument  defining the right of holders of long-term debt of
      the  Company  or of any of its  subsidiaries  other  than  where the total
      amount of  securities  authorized  thereunder  does not  exceed 10% of the
      total assets of the Company and its subsidiaries on a consolidated  basis.
      In accordance  with paragraph  (b)(4)(iii) of Item 601 of Regulation  S-K,
      the Company agrees to furnish to the  Securities and Exchange  Commission,
      upon request, copies of any such instrument.



                                       11
<PAGE>


                                   SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the Company
has duly  caused  this  report  to be signed  on its  behalf by the  undersigned
thereunto duly authorized.

                                                AUDITS & SURVEYS WORLDWIDE, INC.




MAY 14, 1998                                    By: /S/  H. ARTHUR BELLOWS, JR.
------------                                        ---------------------------
Date                                                     H. Arthur Bellows, Jr.
                                                         President


                                                By: /S/   ALAN J. RITTER
                                                    ---------------------------
                                                         Alan J. Ritter
                                                         Senior Vice President
                                                         Chief Financial Officer

                                       12